How is the relationship marketing school of thought different from the transaction school of thought? Are there...
deficiencies in the transaction concept that the relationship school has identified?
Relationship marketing is all about creating longitudinal bonds with customers, which will produce stronger, long-term purchasing and word-of-mouth activity. This type of marketing will also increase referrals, price and service tolerance, plus a willingness to provide information and active inclusion of purchasers in product development.
Transactional marketing is all about delivering the rational, or functional, basic table-stakes components of value delivery. This type of marketing generates passive, transitory, and reactive relationships with the customer, and tends to be short-term in nature. Transactional marketing also tends to commoditize the value proposition.
Dig Deeper on Marketing management and strategy
Related Q&A from Michael Lowenstein
Find out if luxury retail stores should offer loyalty programs for their customers in this tip. Learn how some luxury retail brands build loyal ...continue reading
Get an experts take on raising the hurdle rates of a customer loyalty program and learn more about value-added benefits from Michael Lowenstein.continue reading
Learn a few ways to measure customer loyalty and find out about customer spend or "share of wallet," which expert Michael Lowenstein believes to be ...continue reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.